The Social Security Administration increases the benefits up to 8.7% this 2023 and marking it as the biggest increase since 1981 when double-digit inflation pushed payments to more than 11%.
The Social Security Administration increases the benefits up to 8.7% this 2023 and marking it as the biggest increase since 1981 when double-digit inflation pushed payments to more than 11%.
The SSA Increase
The 2023 COLA adjustment is based on the Consumer Price Index for Urban Wage Earners (CPI-W) between the third quarter of 2021 and the third quarter of 2022. The large increase for retirees in Medicare premiums combined with 2023 that drops the first premium since 2012. The Senior citizens who rely on Social Security will be able to make up most of the ground they lost to inflation over the past year. In 2022, benefits rose 5.9%, but retirees lost a portion of it thanks to a 14.5% increase in Medicare Part B premiums and taxes on benefits.
The SSA declared that the maximum amount of income subject to the Social Security tax will hike by 9% to $160,200 in 2023. The Social Security tax per worker will increase from $1,637 to $18,228 to $19,865, of which $9932.50 will be taken out directly from the employee’s paycheck, up from $9,114 this year.
Other Good News
The good news is that the standard monthly premium for Medicare Part B, which covers outpatient and medical coverage, is set to go down by 3% next year, to $164.90 from the current rate of $170.10. Because those premiums are typically deducted directly from benefit checks, a lower rate will make it possible for more recipients to see the bump from the cost-of-living adjustment.
According to Brian Vosberg, a certified financial planner and enrolled agent, and president of Vosberg Wealth in Glendora, California, the record-high COLA is “great” for retirees, as they deal with increasing expenses on everything from rent, groceries, and gas.
Read Also:
Social Security Updates: The Record-Breaking Massive 2023 COLA Increase Will Finally Start This Year
The Social Security Tax Eliminated In The State Of Minnesota Under Lawmakers’ Proposal
